Upside

The Italian bank’s net profit jumped 11 percent to 301 mln euros in the three months to September. There are more reasons to cheer. A deeper cleanup of the country’s small lenders will trigger bad-loan sales, share issues, and more mergers. Mediobanca can profit from all three.

Context News

Mediobanca on Oct. 27 reported net profit of 301 million euros ($350 million) in the three months to end-September. That was 11 percent higher than the same period a year earlier and helped by the sale of the Italian bank’s remaining stake in motorway group Atlantia.

Loan-loss provisions fell by 40 percent from a year earlier to 55 million euros.

The bank’s common equity Tier 1 capital ratio stood at 13.5 percent at the end of September on a fully phased-in basis, unchanged from three months earlier.

Mediobanca shares were up 3.6 percent at 9.56 euros by 0800 GMT on Oct. 27.